Croatia emerged into the new millennium from a decade in which it experienced a bitter war as the former Yugoslavia broke up, and from several years of authoritarian nationalism under the late president, Franjo Tudjman.
By early 2003 it had made sufficient progress to apply for EU membership, becoming the second former Yugoslav republic after Slovenia to do so.

OVERVIEW

OVERVIEW | FACTS | LEADERS | MEDIA

Accession talks were postponed because of Croatia's failure to detain Gen Ante Gotovina, wanted by the international war crimes tribunal in The Hague. However the green light for the talks to proceed was given in October 2005, and the fugitive general was arrested in Spain in December. The government has pledged to cooperate fully with the tribunal.

Progress has been made in Croatia's willingness to confront the darker aspects of its actions during the violence which flared in the 1990s after independence from Yugoslavia. Gen Mirko Norac, seen as a war hero by many in Croatia, is serving a 12 year sentence for the killing of several dozen Serb civilians in 1991.

At the time of Tudjman's death in December 1999, Croatia was in a parlous state. Its citizens suffered from government-backed attacks on their civil and political rights. The then governing party, the HDZ, was corrupt and the economy was in difficulties, with around 20% of Croatians unemployed.

Presidential and parliamentary elections at the beginning of 2000 ushered in politicians who pledged commitment to Croatia's integration into the European mainstream.

The constitution has been changed to shift power away from the president to the parliament. Croatia has joined the World Trade Organisation and has pledged to open up its economy. It has achieved growth and inflation is under control.

It has rumbling disputes with Slovenia over sea and land borders dating back to the break-up of Yugoslavia.

A country of striking natural beauty with a stunning Adriatic coastline, Croatia is again very popular as a tourist destination.

Mr Mesic won a second five-year term as president in January 2005. It is a largely ceremonial role.

The president proposes the prime minister but it is for parliament to approve the nomination. The president also has powers to dissolve parliament and call elections.

Prime minister: Ivo Sanader

Ivo Sanader says his party has changed since Tudjman's time

President Mesic invited Ivo Sanader, leader of the right-wing Croatian Democratic Union (HDZ), to form a government following elections in November 2003 in which the HDZ won 66 out of the 152 seats in parliament.

Mr Sanader insists that his party has undergone major change since he took over from the late nationalist president, Franjo Tudjman, and now describes it as a traditional conservative party. He has pledged commitment to democracy and the rule of law as well as to upholding human rights and promoting a free market economy.

He has said that EU and Nato membership are the top priority in foreign policy.

On the economic front, Mr Sanader has promised to cut taxes and fight corruption.

He comes from an academic background and speaks several foreign languages, including English.

Croatia's media now operate in a climate of relative freedom following the restrictions of the Tudjman era. The constitution bans censorship and guarantees press freedom.

Croatian Radio-Television, HRT, is a national state-owned public broadcaster and is financed by a mixture of advertising and licence fee revenues. The frequencies of HRT's third national TV network were allocated to a private bidder in September 2003.

Public TV is the main source of news and information for most Croatians. National commercial networks and dozens of private local TV stations compete for viewers.